How To Manage People, Projects, And Profitability
In the business world everyone answers to someone and will at times face difficult questions. Even when things are going smoothly in your business often drilldown questions can be difficult. Nobody wants to stand in front of their superior facing questions they can’t answer.
In professional services companies, your business is all about People, Projects and Profitability – and it is in these areas that you are likely to get the tough questions. We’ve compiled a set of common scenarios in this eGuide that will give you tips to how you can prepare for the tough questions.
Let’s dig into one of the scenarios. How do you measure performance with KPIs? Imagine you are the CEO reviewing your company’s recent performance with the board and you get these questions:
- What is the average hourly rate achieved for our top twenty clients?
- What will be our utilisation rate next quarter?
- How has the pipeline for new projects changed from last quarter?
In order to measure performance with KPIs you need your data to be concise, up-to-date and available across the organisation. If you for instance have dashboard reporting everyone will be accountable for their own KPIs making them more effective. And when data for performance measurement is easily accessible, consistent and more accurate it is more likely to be embraced across the entire organisation.
When running a professional services business you deal with a high degree of project variation and complexity. Even if you’ve identified the key performance indicators (KPIs) your organisation should be tracking it will be difficult, if not impossible, to do so if you are dealing with disconnected, standalone systems or an ERP system that is not optimised for your project-based business.
Project-based ERP gives you the flexibility to handle project variation and monitor KPIs in a way that is relevant to your business. The crucial data is captured in a central repository and allows for full transparency and more accurate reporting.
You’ll learn more about the scenarios of People, Projects, and Profitability in the eGuide The Ultimate Guide to Managing People, Projects, and Profitability. 6 Tips to Steer your Professional Services Firm Towards Success where you amongst others will read about how to manage your resources for profitability, about project excellence, and how to improve cash flow.